Subcontractors owed money by collapsed housebuilder Cotswoldgate are to hold a 鈥渨ar council鈥� to discuss whether there is any potential for legal action against Aurelian Property Finance, the company that backed the now defunct firm, writes Michael Glackin.

Gloucester-based Cotswoldgate went into administration in April owing an estimated 拢3m to more than 30 subcontractors. The failure of the 拢13m-turnover firm follows the collapse into administration of Welsh housing developer Meadgate in March with debts of 拢36m. Both firms were backed by Aurelian.

Meadgate鈥檚 assets were bought by River 7, a company with two directors, Martin Taylor and Jeffrey Taylor, who are also on the board of Aurelian. Both men were also directors of Cotswoldgate, whose assets are now controlled by Aurelian. Richard Perrill, Cotswoldgate鈥檚 managing director, was appointed to the board of River 7 in March.

Steve Evans, chief executive of electrical contractor Clarkson Evans, which is owed 拢184,000 by Cotswoldgate, organised the meeting, which is to be held in Gloucester next week. He expects 30 subcontractors to attend.

Evans said: 鈥淚 don鈥檛 think we鈥檒l get our money back but we want these people brought to book and censured in some way.鈥�

We want these people brought to book and censured in some way

Steve Evans, Clarkson Evans

Evans said the meeting will be addressed by solicitors and insolvency experts who will advise on legal options available to the subcontractors.

He added: 鈥淏etween us we are prepared to invest considerable sums to pursue this case.鈥�

Evans said Aurelian had asked a number of subcontractors to return to complete the work. He said: 鈥淭hey expect it to be business as usual and draw a line under the 拢184,000 we鈥檙e owed.鈥�

Aurelian was unavailable for comment.

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